Milan Vrekic, Mojo Labs Co. & titanfile.com, @truejebus, Halifax, NS, CYBF Mentor
Six out of 10 businesses with drastically change their direction in the first year of existence.
Unfortunately, business plans can take a take a long time to write and are seldom updated as often as they should be. When we start writing our business plans we do not have all the right answers. We make assumptions about financial performance, market conditions, etc. Often, by the time we finish writing a business plan, the business has already changed and parts of the plan need to be updated.
Despite these shortcomings, forsaking business plans to rely only on intuition is not good either. You need to be able to document your assumptions and guiding hypothesis in order to effectively explain your business to an outsider.
To ensure your business plan is adaptable, it is critical for you to pinpoint the areas with the most risk and uncertainty because these are the areas that are most likely to change in your plan over time. Remember that which areas are considered most risky depends on your industry. In the technology industry for example, people often focus on product development when they should be paying closer attention to market forces.
No one wants to spend six months building something that will not be useful. To keep your business plan working for you, be sure update it regularly as your market and your company change and address risk and uncertainty with confidence.